US-China trade war shows signs of cooling after partial easing of tariffs

China has eased investors’ concerns after announcing that a trade deal with the US is in sight after both sides agree to roll back some tariffs.

China and the US have agreed to phase out some tariffs in a move that could lead to a deal and an end to the trade dispute between the world’s two largest economies.

The news has helped eased investors’ concerns, prompting stocks to rise, with the Dow Jones Industrial Average gaining more than 270 points to 27,753 on Thursday, while the S&P 500 climbed 20 points to 3,097 – its second all-time high of the week.

Looking to trade the Dow Jones and other major indices? Open a live or demo account with IG.

US-China deal could see growth forecasts revised, IMF says

The prospect of a US-China trade deal prompted officials at the International Monetary Fund (IMF) to consider revising global growth forecasts for next year.

A spokesman for the IMF said that a rolling back of some tariffs had the potential to improve its economic forecasts for 2020, with the ongoing trade war between the two countries having a significant impact on global growth this year.

‘We see it has holding potential to improve our baseline forecast,’ the IMF spokesperson said. ‘But again, we need to wait for the details.’

You can go long or short global indices with IG using derivatives like CFDs.

Chinese officials keen to roll back tariffs in phases

A spokesman from the Chinese commerce ministry said that Beijing and Washington hope to remove tariffs in phases, with China looking to roll back $360 billion worth of taxes on Chinese imports.

‘In the past two weeks, top negotiators had serious, constructive discussions and agreed to remove the additional tariffs in phases as progress is made on the agreement,’ the spokesman, Gao Feng, said.

‘If China, US reach a phase-one deal, both sides should roll back existing additional tariffs in the same proportion simultaneously.’

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.